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Tan, H. and Jamal, K. (2006) Effect of Accounting Discretion on Ability of Managers to Smooth Earnings. Journal of Accounting and Public Policy, 5, 554-573.
https://doi.org/10.1016/j.jaccpubpol.2006.07.007

has been cited by the following article:

• TITLE: Financial Market Pricing of Earnings Quality: Evidence from a Multi-Factor Return Model

  AUTHORS: Gregory M. Dempster, Nathaniel T. Oliver

  KEYWORDS: Earnings Quality, Cost of Equity, Financial Markets, Multi-Factor Return Models

  JOURNAL NAME: Open Journal of Business and Management, Vol.7 No.1, January 23, 2019

  ABSTRACT: Although earnings quality has been an important part of literature in accounting and financial economics for some time, there are relatively few examples of empirical work designed to isolate the effects of variation in earnings quality on the returns to equity ownership in the marketplace. Building on the previous literature, we conduct a robust analysis of these effects by employing earnings restatements as a proxy for quality of earnings in a multi-factor return model. Our results indicate that material misstatements of earnings are priced risk factors that have persistent (long-run) impacts on equity returns. Applications to business practice are discussed in the light of these results.